Colombia: The 21st century workforce

19. July 2019

The workforce and technology are changing. They are more digital, more technological and more global. Colombia is making the necessary adjustments to be prepared for this.

Digital technology is disrupting entire industries and changing the way companies do business across all stages of the value chain. It affects how they develop, market, produce, sell and deliver products and services. Even today it is becoming an ever greater challenge for organizations to identity and acquire the skills and talents they need to deliver new business models because of myriad issues, including aging populations, technological skill shortages, and an unpredictable political context. Under these circumstances traditional jobs are being reconfigured and new skills are becoming critical to success.

Columbia is facing radical change. The government is helping businesses to adapt to the new global challenges confronting them by introducing a tax reform.

What is the future of the workforce?

The future of work signifies an opportunity for our workforces and work places to evolve. This evolution is being shaped by two powerful forces: the growing adoption of artificial intelligence and the expansion of the workforce.

Automation and thinking machines are replacing human tasks and jobs and changing the skills that organizations are looking for in their people. The future of work asks us to consider the most important questions of our age. What influence will the continuing march of technology, robotic, automation and artificial intelligence have on where we work and how we work? Will we need to work at all? What is our place in an automated world? Some experts focus on technology and the role that automation is predicted to have on jobs and the workplace, and some others consider it less about technological innovation and more about the manner in which humans decide to use the technology.

As companies transform their business models and strategies to realize the opportunities offered by the digital transformation, three interrelated dimensions must be identified for the future workforce:

skills required

workforce needed and

the shape of the workforce

On December 28, 2018, Colombia enacted a new tax reform (Law 1943-Tax Reform). This tax reform makes various changes to the Colombian tax rules that generally apply from January 2019. The highlights are a reduction in tax rates and the establishment of an income tax flat rate of 9% for certain industries and activities. On the other hand, several income tax incentives were created for certain entrepreneurial activities related to technological and creative industries.

Furthermore, the city of Medellin is considering establishing a tax exemption scheme for those companies that set up in the city under certain established parameters, depending on their activities and the creation of new jobs.

With the advent of new disruptive technologies such as blockchain, cloud computing, virtual reality, machine learning, robotic process automation, big data and analytics, the roles and jobs have being shifting dramatically, therefore the traditional model in which employees apply their skills within fixed roles defined through organizational hierarchy is being replace by a more dynamic model with talented individuals applying multiple and diverse skills, say the experts at Ecovis.

About Ecovis

Ecovis is a leading global consulting firm with its origins in Continental Europe. It has almost 8,500 people operating in nearly 80 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.